DCIT vs. SUBEX TECHNOLOGIES LTD.,,

Learned DR submitted that taxes u/s 115JB of the Act, stood on a different footing than the regular tax computed under other provisions of the Act. Therefore, according to him, rebate for taxes paid in a foreign country could not be granted to the assessee.

Per contra, learned AR supported the order of the CIT(A). He also relied on a decision of Co-ordinate Bench in the case of ACIT Vs L & T Ltd., in dated 22-04-2009.

We have perused the orders and heard the rival contentions. The question is whether credit u/s 90 of the IT Act, would be given on tax liability under MAT provisions of the Act. We find that a very same issue had come up before the Mumbai Bench of the Tribunal in the case of ACIT Vs L & T Ltd., (Supra).

Co-ordinate noted that the income on which tax has been paid abroad was included in ‘book profit’ for the purpose of Sec.115JA. It was held that once taxable income was determined either under the normal provisions of the Act or as per Sec.115JB, subsequent portion relating to computation of the tax has to be governed by the normal provision of the Act. It also held that there was no provision in the Act, debarring granting of credit for tax paid abroad in case income is computed u/s 115JA. It was further held that the assessee could not be denied the set off of tax relief against the tax liability determined u/s 115JA.

CIT(A) had given relief to the assessee for the very same reasons mentioned by Co-ordinate Bench in the case of L &T Ltd (Supra). We do not find any good reason to interfere

In the result, the appeal filed by the revenue is dismissed.